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Adding a ready to drink option is a smart move for beverage brands.
RTD is the preferred choice of people with busy lifestyles — aka everyone.
Whether it’s a young professional grabbing a pre-mixed cocktail after work, a group of friends cracking open hard seltzers at a tailgate, or a health-conscious consumer packing for a kombucha on a hike — people from all walks of life value grab-and-go convenience.
This ready-to-drink (RTD) beverage manufacturing guide outlines 10 trends innovative beverage brands should consider before formulating a RTD beverage product in 2024.
What is Ready To Drink (RTD)?
RTD is short for ready-to-drink. They are pre-mixed drinks that come in single-serve containers. What kind of beverages? Hard seltzers, canned cocktails, iced teas, coffees, kombuchas… anything you can crack open and enjoy on the spot is an RTD.
There are two main types of RTD: alcoholic and non-alcoholic beverages.
Alcoholic RTDs include:
Hard seltzers: Carbonated water with alcohol and fruit flavors
Canned cocktails: Pre-mixed cocktails like margaritas, mojitos, or old fashioneds
Wine spritzers: Wine mixed with soda water and fruit flavors
Hard teas and lemonades: Tea or lemonade-based drinks with added alcohol
Non-alcoholic RTDs include:
Teas: Bottled iced teas, kombucha, or matcha lattes
Coffees: Cold brew, nitro coffee, or canned lattes
Functional beverages: Drinks with added vitamins, minerals, or other health-boosting ingredients
Flavored waters: Sparkling or still water with added natural or artificial flavors
Ready To Drink Beverage Industry Overview
Wine coolers were the original RTD. These sweet, wine-based drinks were popular in the 1980s, introducing the concept of pre-mixed alcoholic beverages in convenient packaging.
That gave rise to hard lemonades and alcopop with fruity flavors became popular in the 1990s. But RTD exploded in the late 2010s and early 2020s, fueled by the hard seltzer craze and accelerated by the pandemic when people wanted convenient drinks at home.
While hard seltzers dominated initially, preferences have since shifted towards complex and sophisticated flavors, leading to a boom in canned cocktails and spirits-based RTDs.
While alcohol consumption is declining among young consumers, the convenience of RTD is not going away.
The ready-to-drink is projected to reach $430.30 billion by 2034. This growth is fueled by four main factors: convenience, innovation, health consciousness, and premiumization.
Convenience: RTDs offer unmatched convenience, allowing consumers to enjoy a perfectly mixed drink without prep. This grab-and-go nature appeals to busy people, travelers, and singles.
Flavor Innovation: Brands are continuously pushing the boundaries of flavor, experimenting with unique ingredients to cater to increasingly adventurous palates. Constant innovation keeps consumers buying and trying new products.
Health Consciousness: RTD brands are responding by offering a wider range of better-for-you options. This includes low/no-alcohol beverages, functional beverage formulation with vitamins and minerals, natural ingredients and less sugar.
Premiumization: Consumers are increasingly willing to pay a premium for high-quality, craft cocktails in a can. This has led to a surge in premium RTD offerings that feature top-shelf spirits, artisanal mixers, and sophisticated packaging.
10 RTD Beverage Trends
Trend 1: The Rise of Spirit-Based RTDs: Canned cocktails and pre-mixed drinks made with spirits like vodka, gin, tequila, and whiskey are stealing the spotlight. Consumers are craving more than just fruity fizz; they want sophisticated flavors and a little kick. This is where classic cocktails like margaritas, mojitos, and even Old Fashioneds come into play – all conveniently canned and ready to enjoy.
Trend 2: The Rise of Functional RTDs: People aren't just drinking for the buzz anymore. They want their beverages to do more for them. That's where functional RTDs come in. These drinks are packed with vitamins, minerals, adaptogens, and nootropics. Think of them as your daily dose of wellness in a can. Whether your consumers are looking for an energy boost, stress relief, or immune support, there's a functional RTD formula for them.
Trend 3: Sustainability: Consumers aren't just thinking about what's in their drinks, they're also considering what those drinks come in. Recycled materials, waste reduction, and carbon offsetting are RTD trends that are here to stay. It's all about sipping responsibly, knowing their choice is as good for the planet as it is for them.
Trend 4: Global Flavors Go Mainstream: RTDs are getting a taste of the Far East, with Asian-inspired flavors taking center stage. Soju, a Korean distilled spirit, is making its mark in canned cocktails, while Japanese botanicals are infusing hard teas with unique and refreshing flavors. Think lychee, yuzu, and matcha-infused RTDs. Kampai!
Trend 5: Canned Wine Gets Reinvented: Canned wine is shedding its bad rep and becoming the go-to for wine lovers. The range of canned wines is expanding, from crisp whites and rosés to bold reds and sparkling varieties. The appeal is in the single-serving size, reducing waste and allowing drinkers to enjoy a glass without opening an entire bottle.
Trend 6: Coffee and Tea without the Brew: Coffee and tea lovers are embracing the convenience of RTD beverages, whether they prefer them hot or cold. Options like cold brew, nitro coffee, matcha lattes, and kombucha are in high demand, fueled by a desire for quick caffeine fixes and healthier alternatives. These RTDs often boast antioxidants and beneficial compounds, with low-sugar or sugar-free varieties catering to health-conscious consumers. Some even offer functional benefits like increased focus and energy through added adaptogens or nootropics. The market is also expanding to include hot RTDs, like canned lattes and hot chocolate, offering instant comfort and warmth on the go, as seen in products like NuRange Coffee's self-heating lattes.
Trend 7: Experiential Marketing and Social Media Buzz: RTD brands are upping their marketing game, creating immersive experiences that go beyond traditional advertising. Think pop-up bars, virtual tastings, and social media campaigns that generate buzz and build a community around their products. You’ll see more Instagrammable RTD moments.
Trend 8: Technological Innovations in RTD Production: From innovative brewing techniques to smart packaging solutions, brands are using augmented reality on cans, QR codes that link to cocktail recipes, and temperature-sensitive labels that change color when the drink is perfectly chilled.
Trend 9: Cannabis-Infused Beverages: As cannabis legalization spreads, so does the popularity of cannabis-infused beverages. These RTDs offer a discreet and convenient way to consume cannabis, without the smoke or smell. From THC-infused seltzers to CBD beverages like infused mocktails, there's a growing range of options for those looking to explore the world of cannabis-infused drinks.
Trend 10: Collaborations and Limited Editions: RTD brands are teaming up with other brands, celebrities, and influencers to create unique and limited-edition drinks. These collaborations generate excitement and buzz, attracting new customers and keeping existing ones engaged. Think of a celebrity-endorsed cocktail or a limited-edition flavor inspired by a popular movie or TV show.
Ready To Drink Beverage Packaging Options
Packaging isn't just about holding liquid; it's a statement, an experience, a way to engage your customers. Here’s a guide to ready-to-drink beverage packaging options:
1. Aluminum Cans
Cans are lightweight, portable, and practically indestructible (hello, beach days!). They're perfect for keeping your bubbly drinks fizzy and chilled in a snap. Plus, they're recyclable and offer a blank canvas for some eye-catching designs. They're not ideal for hot drinks, can get a little dented, and might mess with the taste of your precious beverage over time.
2. Glass Bottles
Nothing says "premium" like a glass bottle. They're reusable, don't change with the flavor, and can be molded into all sorts of fancy shapes. But, they're a bit heavier and easier to break than cans. Plus, they can be a pain to produce and ship.
3. Plastic Bottles (PET)
These are lightweight, shatterproof, resealable, and won't break the bank. They're a versatile option for all sorts of drinks. But, they're not the most eco-friendly choice and can get a little funky in the sun (read, chemical taste). Plus, they don't exactly scream "luxury."
4. Carton Packaging (Tetra Pak)
Cartons are the most eco-friendly option, and that matters if you’re marketing to a younger generation. They're made from renewable resources, lightweight, and compact. But they're not great for fizzy drinks, can be a recycling headache in some areas, and might not give off that high-end vibe you're looking for.
Picking the Right Beverage Packaging
What's in the can (or bottle)? The drink formula is the biggest factor. For example, fizzy drinks love cans and glass, while still drinks are happy in plastic or cartons.
Who's your crowd? Younger buyers value eco-friendly beverage packaging.
Cost Consideration: Factor in production, shipping, and storage costs.
By weighing these factors, you can choose the packaging that not only looks good but also protects your drink, appeals to your customers, and aligns with your brand.
Find A Ready-To-Drink (RTD) Beverage Manufacturer
Whether you're looking to launch a new beverage product or revamp an existing one, our drink formulation experts can help you make a ready-to-drink beverage that sells.
If you're looking for expert guidance and support in any of these areas, contact BevNutra for a complimentary beverage manufacturing consultation.
We're here to help you turn your beverage idea into a profitable drink.